Pension issues in SBI -latest analysis:


The readers have already been apprised of the relative developments through the predecessor posts on this blog and this one is the latest dexterously release by him. It covers many a minute intricacies in the matter with a threadbare analysis. The full contents of the subject are given below exhaustively for the benefit and advantage of the readers particulary the retiree pensioners of State Bank of India. The items are serialised item by item:

STATE BANK OF INDIA EMPLOYEES’ PENSION FUND RULES WERE FORMED W.E.F 1.07.1955 WHEN IMPERIAL BANK OF INDIA WAS NATIONALISED AND STATE BANK OF INDIA CAME IN TO EXISTING W.E.F 1.07.1955.RULE 23 RELATES TO CALCULATION OF PENSION.THIS RULE WAS IN IMPERIAL BANK OF INDIA ALSO AS RULE 20.THEN IN STATE BANK OF INDIA THIS RULE IS NOW CALLED REGULATION 23 W.E.F 18TH SETEMBER,2014 WHEN STATE BANK OF INDIA EMPLOYEES’ PENSION FUND REGULATIONS -2014 WAS NOTIFIED IN THE GAZETTE OF the GOVERNMENT OFINDIA.

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REGULATION 23(1)

THE PENSION PAYABLE UNDER regulation 22(REGULATION22 STIPULATE MINIMUM SERVICE FOR PENSION IN S.B.I)SHALL BE THE AMOUNT CALCULATED AT THE RATE OF ONE-SIXTIEST PART OF EVERY YEAR’S PENSIONABLE SERVICE OF THE AVERAGE MONTHLY SUBSTANTIVE  SALARY DRAWN DURING THE LAST TWELVE MONTHS.THIS FORMULA WAS IMPLEMENTED WE.F 1.1.1986.

 WITH THE ADVENT OF BIPARTITE SYSTEM IN BANKING INDUSTRY,THERE WAS A SUBSTANTIAL INCREASE IN BASIC PAY OF EMPLOYEES AND OFFICERS.HOWEVER,THE PENSION  CEILINGS REMAINED CONSTANHT AT RS750/ AND RS1000/,WHICH RESULTED EROSION OF CONCEPT OF 50% OF PAY.MANY SENIOR  OFFICERS STARTED DRAWING PENSION MUCH LESS THAN 50% OF THE LAST DRAWN PAY.THIS CREAT MUCH HEART -BURN.THE PENSIONERS’ ASSOCIATION DELHI CIRCLE APPROACHED THE HON’BLE SUPREME COURT FOR RELIEF,WHICH AFTER HEARING THE PETITIONERS GAVE A DIRECTION ON 23.02.1989 TO BANK TO ENHANCE THE PENSION CEILING TO RS2400/ PER MONTH W.E.F 1.1.1986.IT IS PERTINENT TO NOTE THAT WHEN THE SALARY SCALES WERE CONSTRUCTED AT 332 POINTS OF CPI,THE MAXIMUM BASIC PAY OF SENIOR MOST EXECUTIVE(DY MD) WAS AT RS4800/PER MONTH.THE COURT HAS UPHELD THE CONCEPT OF 50% OF BASIC PAY AS PENSION UPTO THE LEVEL OF DY MANAGING DIRECTOR.

                              ANOMALY OF 5TH BIPARTITE RETIREES

             ALTHOUGH PENSION HAS BEEN PAID AS PER RULE 23(1),HOWEVER,WITH A CEILING OF RS2400/ WHICH WAS HALF OF THE SALARY OFDEPUTYMANAGING DIRECTOR OF 4TH BIPARTITE SETTLEMENT WHICH ENDED ON 31.10.1987..SUBSEQUENTLY,WHEN THE SALARY REVISION TOOK PLACE W.E.F 1.11.1987,BASED ON MERGER OF600 POINTS OF CPI,THE SPIRIT OF HON’BLE SUPREME COURT SHOULD HAVE BEENN KEPT IN MIND AND PENSION CEILINGS SHOULD HAVE BEEN RAISED TO RS3775/ WHICH WAS 50% OF THE HIGHEST BASIC PAY OF SENIORMOST EXECUTIVE OF THE BANK.UNFORTUNATELY CEILING WAS NOTREVISED THOUGH PROPOSAL WAS PUT UPTO GOVERNMENT IN 1989.

                                                     COMMITTEE’S RECOMMENDATIONS FOR 5TH BIPARTITE RETIREES

      ”THE CEILING OF MAXIMUM PENSION IN SBI TO BE INCREASED FROM RS2400/ TORS3775/PER MONTH W.E.F 1.11.1987 BASED ON THE MAXIMUM BASIC PAY OF DMD WHICH WAS FIXED RS 7550/ ONTHE JOINT NOTE DATED 11.06.1989.”

                  IT HAS BEEN OBSEVED THAT COMMITTEE CONSTITUTED BY M.O.F DO NOT CARE REGARDING INTHE PAST AND DECISION OF1989 HAS NOW BEEN TAKEN IN 2017 AFTER 28 YEARS WHILE MAKING ARREARS OFPENSION TO 5TH BIPARTITE RETIREES.

 NOW QUESTION ARISES HOW MANY PENSIONERS OF 5TH BIPARTITE RETIREES SURVIVE NOW?

                                                ANOMALIES OF 6TH BIPARTITE RETIREES

                       THE NEXT WAGE REVISION MERGER OF 1148 POINTS OF CPI WHICH WAS EFFECTED FROM 1.11.1992 IN THE CASE OF AWARD STAFF AND 1.07.1993 IN THE  CASE OF OFFICERS,THE PENSION CEILING WERE REVISED TO RS4250/ PER MONTH W.E F 1.11.1993 WITHOUT TAKING INTO ACCOUNT THE ACTUAL SALARY SCALES DRAWN BY OFFICERS.THE HIGHEST BASIC PAY OF EXECUTIVE(DMD) WAS RS14800/ AND BASIC PENSION SHOULD BE RS7400/ PER MONTH BUT MAXIMUM WAS FIXED AS RS4250/PER MONTH .THIS HAS RESULTED IN FURTHER REDUCTION IN BASIC PENSION TO 28.71%.

IN FEBRUARY 1999 GOVERNMENT BROUGHT IN A CONCEPT OF 40% OF THE LAST DRAWN BASIC PAY OVER AND ABOVE RS8500/ PAY WITH MINIMUM OF RS4250/ PER MONTH W.E.F 1.03.1999

                                                            COMMITTEE’S RECOMMENDATIONS FOR 6TH BIPARTITE RETIREES.

      PENSION IS CALCULATED ON LAST DRWN PAY WHICH WAS REVISED IN CASE OF AWARD STAFF W.E.F 1.11.1992 AND FOR OFFICERS W.E.F 1.07.1993.

                                  ANOMALIES OF 7TH BIPARTITE RETIREES

                   PENSION HAS BEEN PAID ON THE BASIS OF 6TH BIPARTITE PAY SCALES AT 50%/40% FORMULA WITH MINIMUM OF RS4250/ FOR 50% SLAB PAY  OF RS8500/ AND ABOVE BASIC PAY OF RS8500/ AT 40%.

                                    COMMITTEE’S RECOMMENDATIONS FOR 7TH BIPARTITE RETIREES.

             THE MAXIMUM AMOUNT OF PENSION FOR PAY RS14240/ PER MONTH SHALL BE COMPUTED AT 50% OF PAY AND IF   THE PAY IS ABOVE RS14240/ PER MONTH BE COMPUTED AT 40% OF PAY W.E.F 1.11.1997 FOR AWARD STAFF AND W.E.F 1.04.1998 FOR OFFICERS .PENSION FOR THE PERIOD 1.11.1997/1.04.1998 TO 30.04.2005 BE MADE BY ARRIVING AT THE CORRESPONDING STAGE BY DIVIDING BY 1684 AND MULTIPLYING BY 1616 SUBJECT TO MINIMUM OF RS6883/ FOR 40% SLAB(-HALF OF 14240 MULTIPLYING BY 1616 AND DIVIDING BY 1684.) AND THEREAFTER AS COMPUTED SUBJECT TO MINIMUM OF RS7120/ W.E.F 1.05.2005.MAXIMUM PAY OF DMD WAS RS 23700/INCASE OF 7TH BIPARTITE SETTLEMENT AND BASIC PENSION SHOULD BE 50% OF RS23700/ AS RS11850/.

                            ANOMALY OF 8TH BIPARTITE RETIREES

           THE SHIFTING OF EFFECTIVE DATE FROM 1.05.2005 TO 1.11.2002 FOR CUT OF POINT OF RS21040// NOT ACCEPTABLE TO COMMITTEE CONSTITUTED BY M.O.F.

IT MAY BE THAT COMMITTEE PROTECTED THE VESTED INTRESTS OF OTHER NATIONALISED BANKS ,BECAUSE IN THEIR CASE ALSO PENSION WAS REVISED FROM 1.05.2005 FOR 8TH BIPARTITE RETREES NOT FROM 1.11.2002..

    LEGAL POINTS

1 WHEN THEN DEPUTY MANAGING DIRECTOR AND CDO SHRI ASHWINI MEHERA ON 14.12.2015 ADVISED BY EMAIL TO SHRI UPADHYAYA JI ”THE PENSION REGULATIONS IN STATE BANK OF INDIA ARE DIFFERENT FROM PENSION FUND REGULATIONS  OF OTHER NATIONALISED BANKS”   THEN WHY GOVERNMENT/BANK ARE IMPOSING PENSION REGULATIONS OF OTHER BANKS TO S.B.I RETIREES PARTICULARILY CLAUSE 16 OF7TH BIPARTITE SETTLEMENT IMPOSED ON S.B.I PENSIONERS;RETIREES

2  PENSION IS GOVERNED BY RULES/REGULATIONS  AND AN EMPLOYEE COMING WITHIN THOSE RULES/REGULATIONS IS ENTITLED TO CLAIM RIGHTFUL AND LEGIMATE PENSION.HOWEVER,THE COMMITTEE’S REPORT HASNOT MENTIONED THE RULES/REGULATIONS INTHEIR REPORT AND GOVERNMENT HAS ALSONOT MENTIONED THE RULES AND REGULATIONS IN THEIR ORDER.THIS SHOWS THAT GOVERNMENT SHOWS THE VESTED INTERESTSOF OTHER NATIONALISED BANKS.

 .

3 VIOLATION OF ARTICLE 14 AND ARTICLE 21 AND ARTICLE 300A OF THE CONSTITUTIONOF INDIA BYCREATING 50%/40% FORMULA FORPAYMENT OF PENSION TOS.B.I RETIREES.4 WHEN HON’BLE SUPREME COURT DECIDED ON 23.02.1989 IN THE W.P(C)305/1987 THAT PENSION SHOULD BE PAID AT 50% OF LAST 12 MONTHS AVERAGE’PAY’ THEN WHY 50%/40% FORMULA TOS.B.I PENSIONERS/RETIREES

 4 WHENI.B.A HAD ALSON ADVISED THE BANK IN2000 THAT PENSION REGULATIONSOF OTHER BANKS ARE NOT APPLICABLE TO S.B.I RETIREES THEN WHY 50%40% FORMULA FOR S.B.I RETIREES.

5OUR W.P(C)1875/2013 W.P(C)1931/2002 PREM VATIBAGGA &BOTHERS V/S UOI &OTHERS HAVEPRAYED 50% AS PENSION ANDQUASHINGTHE RULE23(2) FOR 40%SLAB TEN WHY GOVERNMENT /BANK HAVEDECIDED TO IMPLEMENT50%/40% FORMULA BYMAKING PEREDENCE FROM 1.03.199 TO31.10.2017(FROM 6TH TO 10THBIPARTITE RETIREES) AND ALSO WANTS TO THIS FORMULA OF50%/40%INFUTUREALSO I.E FROM 11TH BIPARTITE AND SOON

REGULATION 23(1)

THE PENSION PAYABLE UNDER regulation 22(REGULATION22 STIPULATE MINIMUM SERVICE FOR PENSION IN S.B.I)SHALL BE THE AMOUNT CALCULATED AT THE RATE OF ONE-SIXTIEST PART OF EVERY YEAR’S PENSIONABLE SERVICE OF THE AVERAGE MONTHLY SUBSTANTIVE  SALARY DRAWN DURING THE LAST TWELVE MONTHS.THIS FORMULA WAS IMPLEMENTED WE.F 1.1.1986.

       WITH THE ADVENT OF BIPARTITE SYSTEM IN BANKING INDUSTRY,THERE WAS A SUBSTANTIAL INCREASE IN BASIC PAY OF EMPLOYEES AND OFFICERS.HOWEVER,THE PENSION  CEILINGS REMAINED CONSTANHT AT RS750/ AND RS1000/,WHICH RESULTED EROSION OF CONCEPT OF 50% OF PAY.MANY SENIOR  OFFICERS STARTED DRAWING PENSION MUCH LESS THAN 50% OF THE LAST DRAWN PAY.THIS CREAT MUCH HEART -BURN.THE PENSIONERS’ ASSOCIATION DELHI CIRCLE APPROACHED THE HON’BLE SUPREME COURT FOR RELIEF,WHICH AFTER HEARING THE PETITIONERS GAVE A DIRECTION ON 23.02.1989 TO BANK TO ENHANCE THE PENSION CEILING TO RS2400/ PER MONTH W.E.F 1.1.1986.IT IS PERTINENT TO NOTE THAT WHEN THE SALARY SCALES WERE CONSTRUCTED AT 332 POINTS OF CPI,THE MAXIMUM BASIC PAY OF SENIOR MOST EXECUTIVE(DY MD) WAS AT RS4800/PER MONTH.THE COURT HAS UPHELD THE CONCEPT OF 50% OF BASIC PAY AS PENSION UPTO THE LEVEL OF DY MANAGING DIRECTOR.

                              ANOMALY OF 5TH BIPARTITE RETIREES

             ALTHOUGH PENSION HAS BEEN PAID AS PER RULE 23(1),HOWEVER,WITH A CEILING OF RS2400/ WHICH WAS HALF OF THE SALARY OFDEPUTYMANAGING DIRECTOR OF 4TH BIPARTITE SETTLEMENT WHICH ENDED ON 31.10.1987..SUBSEQUENTLY,WHEN THE SALARY REVISION TOOK PLACE W.E.F 1.11.1987,BASED ON MERGER OF600 POINTS OF CPI,THE SPIRIT OF HON’BLE SUPREME COURT SHOULD HAVE BEENN KEPT IN MIND AND PENSION CEILINGS SHOULD HAVE BEEN RAISED TO RS3775/ WHICH WAS 50% OF THE HIGHEST BASIC PAY OF SENIORMOST EXECUTIVE OF THE BANK.UNFORTUNATELY CEILING WAS NOTREVISED THOUGH PROPOSAL WAS PUT UPTO GOVERNMENT IN 1989.

                                                     COMMITTEE’S RECOMMENDATIONS FOR 5TH BIPARTITE RETIREES

      ”THE CEILING OF MAXIMUM PENSION IN SBI TO BE INCREASED FROM RS2400/ TORS3775/PER MONTH W.E.F 1.11.1987 BASED ON THE MAXIMUM BASIC PAY OF DMD WHICH WAS FIXED RS 7550/ ONTHE JOINT NOTE DATED 11.06.1989.”

                  IT HAS BEEN OBSEVED THAT COMMITTEE CONSTITUTED BY M.O.F DO NOT CARE REGARDING INTHE PAST AND DECISION OF1989 HAS NOW BEEN TAKEN IN 2017 AFTER 28 YEARS WHILE MAKING ARREARS OFPENSION TO 5TH BIPARTITE RETIREES.

 NOW QUESTION ARISES HOW MANY PENSIONERS OF 5TH BIPARTITE RETIREES SURVIVE NOW?

                                                ANOMALIES OF 6TH BIPARTITE RETIREES

                       THE NEXT WAGE REVISION MERGER OF 1148 POINTS OF CPI WHICH WAS EFFECTED FROM 1.11.1992 IN THE CASE OF AWARD STAFF AND 1.07.1993 IN THE  CASE OF OFFICERS,THE PENSION CEILING WERE REVISED TO RS4250/ PER MONTH W.E F 1.11.1993 WITHOUT TAKING INTO ACCOUNT THE ACTUAL SALARY SCALES DRAWN BY OFFICERS.THE HIGHEST BASIC PAY OF EXECUTIVE(DMD) WAS RS14800/ AND BASIC PENSION SHOULD BE RS7400/ PER MONTH BUT MAXIMUM WAS FIXED AS RS4250/PER MONTH .THIS HAS RESULTED IN FURTHER REDUCTION IN BASIC PENSION TO 28.71%.

IN FEBRUARY 1999 GOVERNMENT BROUGHT IN A CONCEPT OF 40% OF THE LAST DRAWN BASIC PAY OVER AND ABOVE RS8500/ PAY WITH MINIMUM OF RS4250/ PER MONTH W.E.F 1.03.1999

                                                            COMMITTEE’S RECOMMENDATIONS FOR 6TH BIPARTITE RETIREES.

      PENSION IS CALCULATED ON LAST DRWN PAY WHICH WAS REVISED IN CASE OF AWARD STAFF W.E.F 1.11.1992 AND FOR OFFICERS W.E.F 1.07.1993.

                                  ANOMALIES OF 7TH BIPARTITE RETIREES

                   PENSION HAS BEEN PAID ON THE BASIS OF 6TH BIPARTITE PAY SCALES AT 50%/40% FORMULA WITH MINIMUM OF RS4250/ FOR 50% SLAB PAY  OF RS8500/ AND ABOVE BASIC PAY OF RS8500/ AT 40%.

                                    COMMITTEE’S RECOMMENDATIONS FOR 7TH BIPARTITE RETIREES.

             THE MAXIMUM AMOUNT OF PENSION FOR PAY RS14240/ PER MONTH SHALL BE COMPUTED AT 50% OF PAY AND IF   THE PAY IS ABOVE RS14240/ PER MONTH BE COMPUTED AT 40% OF PAY W.E.F 1.11.1997 FOR AWARD STAFF AND W.E.F 1.04.1998 FOR OFFICERS .PENSION FOR THE PERIOD 1.11.1997/1.04.1998 TO 30.04.2005 BE MADE BY ARRIVING AT THE CORRESPONDING STAGE BY DIVIDING BY 1684 AND MULTIPLYING BY 1616 SUBJECT TO MINIMUM OF RS6883/ FOR 40% SLAB(-HALF OF 14240 MULTIPLYING BY 1616 AND DIVIDING BY 1684.) AND THEREAFTER AS COMPUTED SUBJECT TO MINIMUM OF RS7120/ W.E.F 1.05.2005.MAXIMUM PAY OF DMD WAS RS 23700/INCASE OF 7TH BIPARTITE SETTLEMENT AND BASIC PENSION SHOULD BE 50% OF RS23700/ AS RS11850/.

                            ANOMALY OF 8TH BIPARTITE RETIREES

           THE SHIFTING OF EFFECTIVE DATE FROM 1.05.2005 TO 1.11.2002 FOR CUT OF POINT OF RS21040// NOT ACCEPTABLE TO COMMITTEE CONSTITUTED BY M.O.F.

IT MAY BE THAT COMMITTEE PROTECTED THE VESTED INTRESTS OF OTHER NATIONALISED BANKS ,BECAUSE IN THEIR CASE ALSO PENSION WAS REVISED FROM 1.05.2005 FOR 8TH BIPARTITE RETREES NOT FROM 1.11.2002..

    LEGAL POINTS

1 WHEN THEN DEPUTY MANAGING DIRECTOR AND CDO SHRI ASHWINI MEHERA ON 14.12.2015 ADVISED BY EMAIL TO SHRI UPADHYAYA JI ”THE PENSION REGULATIONS IN STATE BANK OF INDIA ARE DIFFERENT FROM PENSION FUND REGULATIONS  OF OTHER NATIONALISED BANKS”   THEN WHY GOVERNMENT/BANK ARE IMPOSING PENSION REGULATIONS OF OTHER BANKS TO S.B.I RETIREES PARTICULARILY CLAUSE 16 OF7TH BIPARTITE SETTLEMENT IMPOSED ON S.B.I PENSIONERS;RETIREES

2  PENSION IS GOVERNED BY RULES/REGULATIONS  AND AN EMPLOYEE COMING WITHIN THOSE RULES/REGULATIONS IS ENTITLED TO CLAIM RIGHTFUL AND LEGIMATE PENSION.HOWEVER,THE COMMITTEE’S REPORT HASNOT MENTIONED THE RULES/REGULATIONS INTHEIR REPORT AND GOVERNMENT HAS ALSONOT MENTIONED THE RULES AND REGULATIONS IN THEIR ORDER.THIS SHOWS THAT GOVERNMENT SHOWS THE VESTED INTERESTSOF OTHER NATIONALISED BANKS.

 .

3VIOLATION OF ARTICLE 14 AND ARTICLE 21 AND ARTICLE 300A OF THE CONSTITUTIONOF INDIA BYCREATING 50%/40% FORMULA FORPAYMENT OF PENSION TOS.B.I RETIREES.4 WHEN HON’BLE SUPREME COURT DECIDED ON 23.02.1989 IN THE W.P(C)305/1987 THAT PENSION SHOULD BE PAID AT 50% OF LAST 12 MONTHS AVERAGE’PAY’ THEN WHY 50%/40% FORMULA TOS.B.I PENSIONERS/RETIREES

 4 WHENI.B.A HAD ALSON ADVISED THE BANK IN2000 THAT PENSION REGULATIONSOF OTHER BANKS ARE NOT APPLICABLE TO S.B.I RETIREES THEN WHY 50%40% FORMULA FOR S.B.I RETIREES.

5OUR W.P(C)1875/2013 W.P(C)1931/2002 PREM VATIBAGGA &BOTHERS V/S UOI &OTHERS HAVEPRAYED 50% AS PENSION ANDQUASHINGTHE RULE23(2) FOR 40%SLAB TEN WHY GOVERNMENT /BANK HAVEDECIDED TO IMPLEMENT50%/40% FORMULA BYMAKING PEREDENCE FROM 1.03.199 TO31.10.2017(FROM 6TH TO 10THBIPARTITE RETIREES) AND ALSO WANTS TO THIS FORMULA OF50%/40%INFUTUREALSO I.E FROM 11TH BIPARTITE AND SOON.

REGULATION 23(1)

THE PENSION PAYABLE UNDER regulation 22(REGULATION22 STIPULATE MINIMUM SERVICE FOR PENSION IN S.B.I)SHALL BE THE AMOUNT CALCULATED AT THE RATE OF ONE-SIXTIEST PART OF EVERY YEAR’S PENSIONABLE SERVICE OF THE AVERAGE MONTHLY SUBSTANTIVE  SALARY DRAWN DURING THE LAST TWELVE MONTHS.THIS FORMULA WAS IMPLEMENTED WE.F 1.1.1986.

       WITH THE ADVENT OF BIPARTITE SYSTEM IN BANKING INDUSTRY,THERE WAS A SUBSTANTIAL INCREASE IN BASIC PAY OF EMPLOYEES AND OFFICERS.HOWEVER,THE PENSION  CEILINGS REMAINED CONSTANHT AT RS750/ AND RS1000/,WHICH RESULTED EROSION OF CONCEPT OF 50% OF PAY.MANY SENIOR  OFFICERS STARTED DRAWING PENSION MUCH LESS THAN 50% OF THE LAST DRAWN PAY.THIS CREAT MUCH HEART -BURN.THE PENSIONERS’ ASSOCIATION DELHI CIRCLE APPROACHED THE HON’BLE SUPREME COURT FOR RELIEF,WHICH AFTER HEARING THE PETITIONERS GAVE A DIRECTION ON 23.02.1989 TO BANK TO ENHANCE THE PENSION CEILING TO RS2400/ PER MONTH W.E.F 1.1.1986.IT IS PERTINENT TO NOTE THAT WHEN THE SALARY SCALES WERE CONSTRUCTED AT 332 POINTS OF CPI,THE MAXIMUM BASIC PAY OF SENIOR MOST EXECUTIVE(DY MD) WAS AT RS4800/PER MONTH.THE COURT HAS UPHELD THE CONCEPT OF 50% OF BASIC PAY AS PENSION UPTO THE LEVEL OF DY MANAGING DIRECTOR.

                              ANOMALY OF 5TH BIPARTITE RETIREES

             ALTHOUGH PENSION HAS BEEN PAID AS PER RULE 23(1),HOWEVER,WITH A CEILING OF RS2400/ WHICH WAS HALF OF THE SALARY OFDEPUTYMANAGING DIRECTOR OF 4TH BIPARTITE SETTLEMENT WHICH ENDED ON 31.10.1987..SUBSEQUENTLY,WHEN THE SALARY REVISION TOOK PLACE W.E.F 1.11.1987,BASED ON MERGER OF600 POINTS OF CPI,THE SPIRIT OF HON’BLE SUPREME COURT SHOULD HAVE BEENN KEPT IN MIND AND PENSION CEILINGS SHOULD HAVE BEEN RAISED TO RS3775/ WHICH WAS 50% OF THE HIGHEST BASIC PAY OF SENIORMOST EXECUTIVE OF THE BANK.UNFORTUNATELY CEILING WAS NOTREVISED THOUGH PROPOSAL WAS PUT UPTO GOVERNMENT IN 1989.

                                                     COMMITTEE’S RECOMMENDATIONS FOR 5TH BIPARTITE RETIREES

      ”THE CEILING OF MAXIMUM PENSION IN SBI TO BE INCREASED FROM RS2400/ TORS3775/PER MONTH W.E.F 1.11.1987 BASED ON THE MAXIMUM BASIC PAY OF DMD WHICH WAS FIXED RS 7550/ ONTHE JOINT NOTE DATED 11.06.1989.”

                  IT HAS BEEN OBSEVED THAT COMMITTEE CONSTITUTED BY M.O.F DO NOT CARE REGARDING INTHE PAST AND DECISION OF1989 HAS NOW BEEN TAKEN IN 2017 AFTER 28 YEARS WHILE MAKING ARREARS OFPENSION TO 5TH BIPARTITE RETIREES.

 NOW QUESTION ARISES HOW MANY PENSIONERS OF 5TH BIPARTITE RETIREES SURVIVE NOW?

                                                ANOMALIES OF 6TH BIPARTITE RETIREES

                       THE NEXT WAGE REVISION MERGER OF 1148 POINTS OF CPI WHICH WAS EFFECTED FROM 1.11.1992 IN THE CASE OF AWARD STAFF AND 1.07.1993 IN THE  CASE OF OFFICERS,THE PENSION CEILING WERE REVISED TO RS4250/ PER MONTH W.E F 1.11.1993 WITHOUT TAKING INTO ACCOUNT THE ACTUAL SALARY SCALES DRAWN BY OFFICERS.THE HIGHEST BASIC PAY OF EXECUTIVE(DMD) WAS RS14800/ AND BASIC PENSION SHOULD BE RS7400/ PER MONTH BUT MAXIMUM WAS FIXED AS RS4250/PER MONTH .THIS HAS RESULTED IN FURTHER REDUCTION IN BASIC PENSION TO 28.71%.

IN FEBRUARY 1999 GOVERNMENT BROUGHT IN A CONCEPT OF 40% OF THE LAST DRAWN BASIC PAY OVER AND ABOVE RS8500/ PAY WITH MINIMUM OF RS4250/ PER MONTH W.E.F 1.03.1999

                                                            COMMITTEE’S RECOMMENDATIONS FOR 6TH BIPARTITE RETIREES.

      PENSION IS CALCULATED ON LAST DRWN PAY WHICH WAS REVISED IN CASE OF AWARD STAFF W.E.F 1.11.1992 AND FOR OFFICERS W.E.F 1.07.1993.

                                  ANOMALIES OF 7TH BIPARTITE RETIREES

                   PENSION HAS BEEN PAID ON THE BASIS OF 6TH BIPARTITE PAY SCALES AT 50%/40% FORMULA WITH MINIMUM OF RS4250/ FOR 50% SLAB PAY  OF RS8500/ AND ABOVE BASIC PAY OF RS8500/ AT 40%.

                                    COMMITTEE’S RECOMMENDATIONS FOR 7TH BIPARTITE RETIREES.

             THE MAXIMUM AMOUNT OF PENSION FOR PAY RS14240/ PER MONTH SHALL BE COMPUTED AT 50% OF PAY AND IF   THE PAY IS ABOVE RS14240/ PER MONTH BE COMPUTED AT 40% OF PAY W.E.F 1.11.1997 FOR AWARD STAFF AND W.E.F 1.04.1998 FOR OFFICERS .PENSION FOR THE PERIOD 1.11.1997/1.04.1998 TO 30.04.2005 BE MADE BY ARRIVING AT THE CORRESPONDING STAGE BY DIVIDING BY 1684 AND MULTIPLYING BY 1616 SUBJECT TO MINIMUM OF RS6883/ FOR 40% SLAB(-HALF OF 14240 MULTIPLYING BY 1616 AND DIVIDING BY 1684.) AND THEREAFTER AS COMPUTED SUBJECT TO MINIMUM OF RS7120/ W.E.F 1.05.2005.MAXIMUM PAY OF DMD WAS RS 23700/INCASE OF 7TH BIPARTITE SETTLEMENT AND BASIC PENSION SHOULD BE 50% OF RS23700/ AS RS11850/.

                            ANOMALY OF 8TH BIPARTITE RETIREES

           THE SHIFTING OF EFFECTIVE DATE FROM 1.05.2005 TO 1.11.2002 FOR CUT OF POINT OF RS21040// NOT ACCEPTABLE TO COMMITTEE CONSTITUTED BY M.O.F.

IT MAY BE THAT COMMITTEE PROTECTED THE VESTED INTRESTS OF OTHER NATIONALISED BANKS ,BECAUSE IN THEIR CASE ALSO PENSION WAS REVISED FROM 1.05.2005 FOR 8TH BIPARTITE RETREES NOT FROM 1.11.2002..

    LEGAL POINTS

1 WHEN THEN DEPUTY MANAGING DIRECTOR AND CDO SHRI ASHWINI MEHERA ON 14.12.2015 ADVISED BY EMAIL TO SHRI UPADHYAYA JI ”THE PENSION REGULATIONS IN STATE BANK OF INDIA ARE DIFFERENT FROM PENSION FUND REGULATIONS  OF OTHER NATIONALISED BANKS”   THEN WHY GOVERNMENT/BANK ARE IMPOSING PENSION REGULATIONS OF OTHER BANKS TO S.B.I RETIREES PARTICULARILY CLAUSE 16 OF7TH BIPARTITE SETTLEMENT IMPOSED ON S.B.I PENSIONERS;RETIREES

2  PENSION IS GOVERNED BY RULES/REGULATIONS  AND AN EMPLOYEE COMING WITHIN THOSE RULES/REGULATIONS IS ENTITLED TO CLAIM RIGHTFUL AND LEGIMATE PENSION.HOWEVER,THE COMMITTEE’S REPORT HASNOT MENTIONED THE RULES/REGULATIONS INTHEIR REPORT AND GOVERNMENT HAS ALSONOT MENTIONED THE RULES AND REGULATIONS IN THEIR ORDER.THIS SHOWS THAT GOVERNMENT SHOWS THE VESTED INTERESTSOF OTHER NATIONALISED BANKS.

 .

3VIOLATION OF ARTICLE 14 AND ARTICLE 21 AND ARTICLE 300A OF THE CONSTITUTIONOF INDIA BYCREATING 50%/40% FORMULA FORPAYMENT OF PENSION TOS.B.I RETIREES.4 WHEN HON’BLE SUPREME COURT DECIDED ON 23.02.1989 IN THE W.P(C)305/1987 THAT PENSION SHOULD BE PAID AT 50% OF LAST 12 MONTHS AVERAGE’PAY’ THEN WHY 50%/40% FORMULA TOS.B.I PENSIONERS/RETIREES

 4 WHENI.B.A HAD ALSON ADVISED THE BANK IN2000 THAT PENSION REGULATIONSOF OTHER BANKS ARE NOT APPLICABLE TO S.B.I RETIREES THEN WHY 50%40% FORMULA FOR S.B.I RETIREES.

5OUR W.P(C)1875/2013 W.P(C)1931/2002 PREM VATIBAGGA &BOTHERS V/S UOI &OTHERS HAVEPRAYED 50% AS PENSION ANDQUASHINGTHE RULE23(2) FOR 40%SLAB TEN WHY GOVERNMENT /BANK HAVEDECIDED TO IMPLEMENT50%/40% FORMULA BYMAKING PEREDENCE FROM 1.03.199 TO31.10.2017(FROM 6TH TO 10THBIPARTITE RETIREES) AND ALSO WANTS TO THIS FORMULA OF50%/40%INFUTUREALSO I.E FROM 11TH BIPARTITE AND SOON.

K.R. SAINI

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13 thoughts on “Pension issues in SBI -latest analysis:”

  1. Mr.Saini , all the points raised by you have been dealt with in GOP WP in DHC in 2016 itself by shri. PPR.Upadyaya.You were silent about the points raised by you now ,when you are writing in SBIPABC web site and The blog Avenues’ I have been following you since 2014. Here again you have not touched the point whether prior approval of GOI is necessary or not,Shri.Upadyaya proved beyond any shadow of doubt that it is not only unnecessary but un warranted,with documentary evidences.What is your stand? because you are the only person strongly supporting Penfed stand that the GOI nod is a must.

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  2. ANY AMENDMENT TO TO THE SBIEPFRs , IF PREJUDICIAL TO THE VALIDITY OF THE REGULATION PREVIOUSLY DONE UNDER THE RULES AND HENCE IS NOT COMPLYING WITH THE PROVISIONS OF THE SUB SECTION (4) OF SECTION 50 OF THE SBI ACT IS ILLEGAL.THUS THE 50%/40% CONCEPT BY AMENDING THE ORIGINAL SBIEPFRs OF 50%, BY THE SBI & GETTING IT APPROVED BY THE CG,,IS ILLEGAL.

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  3. Shri.R.P.Guptaji,you are correct and even in your mails during 2014–15 , in SBIPABC web you have with authority pointed out this,unfortunately no takers of your views at that time.More over to interpret a simple rule/ law no legal knowledge is required, as said by shri.K.R.Sainiji.
    With regards,
    K.V.Lakshmanan.

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    1. IN NUT SHELL W.P(C)1875/2013 FEDERATION OF STATE BANK OF INDIA& OTHERS V/S UNION OF INDIA& OTHERS,W.P(C)8095/2016 UMESH SHARMA V/S THE STATE BANK OF INDIA AND W.P(C)9679/2016 MANOHAR LAL V/STHE STATE BANK OF INDIA,WE ARE SEEKING THE QUASHING OF THE PROVISO TO RULE 23 (2)STIPULATING THE MONETARY CEILINGS AND PROVISO REGULATION (2)(a) AND REGULATION 23(2)(b) OF 2014 WITH ONLY ONE CEILING AT 50%AS BASIC PENSION OF THE AVERAGE PAY OF THE LAST 12MONTHS PENSIONABLE SERVICE WITH 30 YEARS PENSIONABLE SERVICE AND PRORATA IF PENSIONABLE SERVICE IS LESS THAN 30 YEARS PENSIONABLE SERVICE AS PER VERDICT OF HON’BLE SUPREME COURT ON 23.02.1989 IN W.P(C)305/1987W.E.F 1.1.1986 ON THE IDENTICAL PENSION FORMULA OF 4TH PAY COMMISSION FOR CENTRAL GOVERNMENT EMPLOYEES.
      K.R.SAINI

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  4. Please don’t quote Penfed case 1875/2013(original year of filing the case in SC was 2010)! Which has been filed under certain compulsions exerted by very few members who are well versed in pension anamolies in SBI and just to satisfy these members a half hearted WP was filed in SC IMPLEADING Tom Dick Harry who are not connected with the case and rank outsiders as far as pension matter is concerned.The conduct of the case since 2010 is most unsatisfactory and they have collected more than 2.5 crores towards legal fund and exhausted it,even before case came up for hearing.Again they gave a call in April 2017 and now from arrears.The payment of arrears is NOT THE ACHIEVEMENT OF PENFED,IT IS ACCIDENTAL. The arrears paid is adhoc ,on ad hock pension.The Penfed is silent how 8500 basic has been fixed for th BPRS and 50 % there of a 4250 has been fixed as minimum pension while basic pay for JMG as per 6 th wage revision is 9200.The WP -1875/2013 is a wasteful excercise and the huge amount spent on this is a criminal waste.

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    1. COMMITTE’S REPORT CONSTITUTED BY M.O.F.KINDLY REFER TO CLAUSE 3.11 WHICH SAYS AS UNDER———-
      ”THE COMMITTEE ALSO OBSERVED THAT AS REGARDS THE CONCEPT OF 50%/40%,IN VIEW OF THREE RETIRAL BENEFITS IN S.B.I WHERE 10% CONTRIBUTION IS BEING MADE BY THE CLAUSE 3.11” THE COMMITTEE ALSO OBSERVED AS REGARDS THE CONCEPT OF 50%/40%.IN VIEW OF OFTHREE RETIRAL BENEFITS INS.BI WHERE 10% CONTRIBUTION IS BEING MADE BY THE EMPLOYER IN PROVIDENT FUND(I.E THE THIRD RETIRAL BENEFIT),THE CONCEPT OF 40% PENSION INSTEAD OF 50% AFTER A CERTAIN PAY(I.E CEILING BASED) IS LOGICAL AND REASONABLE JUSTIFIED.THERE WAS NO OBJECTION FROM THE S.B.I ON THIS ASPECT DURING THE DELIBERATIONS WITH S.B.I AS THE SAME HAS BEEN IN PRACTICE OF LONG TIME AND HAS STOOD THE TEST TO TIME,THE SAME IS ACCEPTABLE.”
      AS YOU ARE AWARE THAT FORMULA OF PENSION AT 50%/40% HAD BEEN INTRODUCED W.E.F 1.03.1999 CLEVERLY AND TACT FULLY BY THE GOVERNMENT OF INDIA FROM THE 6TH BIPARTITE AND BANK INTRODUCED THE WORD”THEREAFTER” ON THE ADVICE OF GOVERNMENT IN THE ”STATE BANK OF INDIA EMPLOYEES’ PENSION FUND RULES–1955′ WITHOUT ANY AMENDMENT IN RULES 1955 AND CONTINUED IN THE 8TH,9TH AND 10TH BIPARTITE SETTLEMENT ALSO.’ AS IF THIS FORMULA OF 50%/40% BE REGULARISED AND NOW THIS FORMULA OF50%/40% HAD BEEN PRACTISED ON THE 6TH TO 10TH BIPARTITE ALSO.
      HOWEVER ,IT WILOL BE OBSERVED FROM THE ABOVE THAT PRIOR TO INTRODUCTION OF PENSION SCHEME IN NATIONALZED BANKS THE S.B.I HAD TWO BENEFITS,I.E C.P.F AND PENSION AND NATIONALISED BANKS HAD C.P.F AND SERVICE GRATUITY.
      THE GRATUITY CAME IN S.BI BY A STATUTORY PROVISION–ON ACT 1972 IMPLEMENT ON WHICH INS.B.I HAD NO CONTROL.THE S.B.I NEVER INTENDED TO EXTEND THIRD RETIRAL BENEFIT TO ITS EMPLOYEES AND IT WAS MADE TO PAY GRATUITY DESPITE BEING SOUGHT EXAMPTION FROM GOVERNMENT.ACCORDINGLY S.B.I TERMINAL EBEFITS CAN NOT BE SAID TO CURTAIL.
      WHY 22 COURTCASES ARE PENDING SEEKING 50% OF PAY AS PENSION,ITIS NOT ARBITRARY FIXING OF CEILINGT WITHOUT ANYRELAVANCE TO GOVERNMENTOFVINDIA APPROVAL BIPARTITE SETTLEMENT PAY? THE CEILING IS FIXED BY MERGING D.A POINTS ONLY INSUCH A MANNER TO HAVE SAME QUANTUM OF PENSION BY APPLYING TAPERING D.A REMAINS THE SAME OF PENSION FROM JMGS TO SMGS.

      K.R.SAINI

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    2. PLEASE REFER TO LAST PARAGRAPH OF COMMITTEE’S REPORT WHICH SAYS ——————–
      4.7”THE COMMITTEE ALSO PROPOSE THAT S.B.I MAY CONSIDER MOVING A PROPOSAL FOR AMENDING PENSION REGULATIONS FOR AUTOMATIC LINKING OF THE CUT-OFF CEILING PAY IN 50%/40% CONCEPT OF PENSION WITH MAXIMUM PAY OF JMGS-I SCALE IN SBI AND STREAMLINING THE PENSION REGULATIONS MAKING PROVISIONS RELATING TO PENSION CEILINGS AS REGULAR REGULATIONS.”
      THIS CLAUSE IS DISADVANTAGEOUS TO S.B.I PENSIONERS AS M.O.F WANT TO IMPLEMENT OF PENSION FORMULA OF 50%/40% IN FUTURE ALSO IT WILL AFFACT THE FUTURE BIPARTITES .RETIRED /RETIREES.ALSO.
      K.R.SAINI.

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  5. In as much as the GOP WP rejected GOI intervention in deciding pension related issues in SBI with documentary evidences, supported setteled laws the formation of committee was illegal as GOi has no locus standi.How the committee’s recommendations shall bind the SBI pensioners ,while the formation of committee itself is not legal.An out sider( GOI) having no rights to interfere,formed an unlawful committee,and bank followed unlawful recommendationsand implemented.The bank should be made accountable, all officials involved in this deliberate unlawful activity should be punished.

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    1. IN RESPONSE TO RMRAJADHYAKSHA YOU ARE QUITE RIGHT ,HOWEVER,GOVERNMENT’S ORDER DATED 20.04,2017 ON THE BASIS OF COMMITTEE’S REPORT ,IT IS AT 50%/40% FORMULA EXCEPT 5TH BIPARTITE RETIREES WHEREIN IT RECOMMEND AT 50% OF THE LAST 12 MONTHS AVERAGE PAY.
      K.R.SAINI

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